Trump’s financial aid freeze blocked by D.C. federal judge
Courtesy of Clair Sapilewski
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After President Donald Trump issued an executive order seeking to pause all federal loans, grants and other financial assistance, a federal judge in the District of Columbia moved to block the action Tuesday afternoon, The New York Times reported. The order did not specify what programs would be halted, causing uncertainty for many students relying on federal student aid.
Scheduled to take effect at 5 p.m. Tuesday, the order would freeze funding for several federal programs, including Medicaid and universal school lunch services, until they can be reviewed for their diversity, equity, inclusion and accessibility policies. With the order, the newly elected president continues to uphold his campaign promises to cut federal and state DEIA initiatives.
“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” Trump’s order reads.
The order stated that federal dollars “received directly” would not be impacted, referring to federal funding that goes straight to people. However, because federal student loans and Pell Grants are sent directly to schools, with students never receiving the money themselves, the Times reported that this incident has incited panic and confusion among college students.
While the Free Application for Federal Student Aid uses federal dollars, it would not have been impacted by the order, the Times reported.
The United States Department of Education responded with a statement assuring that the freeze would not affect federal student loans and grants, as the order specifies individual payments will not be frozen.
Federal Student Aid also displayed an alert online stating that direct loans, Pell Grants and other aid provided to individual students will not be impacted by the pause and that FAFSA will continue to disburse student aid.
Funding for federal work-study programs will also be exempt from review.
Democratic Rep. John Mannion, who represents New York’s 22nd Congressional District in the U.S. House of Representatives, issued a Tuesday statement expressing concern over the order and calling for its immediate revocation. Mannion also accused Trump’s order of causing “significant confusion” across his district, which includes Onondaga and Madison Counties, as well as parts of Cayuga, Cortland and Oneida counties. The district contains multiple academic institutions including Syracuse University and SUNY Cortland.
“Not only does this guidance threaten our national security, but it also negatively impacts essential programs that support the hiring, training, and retaining of local law enforcement officials and firefighters, provide free and reduced lunches for students, enable workforce development initiatives, and help small businesses thrive and serve our communities,” Mannion said in the statement.
New York State Attorney General Letitia James is part of a group of seven attorneys general planning to file a lawsuit to block the order. She is working with fellow attorneys general from California, Illinois, New Jersey, Rhode Island, Massachusetts and Delaware in the suit.
In a Tuesday afternoon X post, James called the order “chaos cuts” and said it jeopardizes important federal resources.
“This administration has unleashed mayhem with its latest illegal action, affecting kids who rely on federal funds for their next meal, seniors on Medicaid, and law enforcement fighting drug and gun crime,” the post reads.
Ultimately, a lawsuit filed by the national legal organization, Democracy Forward, blocked Trump’s order. The lawsuit argued that the order violated the First Amendment and laws governing executive orders.
The D.C. judge said she would issue a more permanent decision on Feb. 3.
Published on January 28, 2025 at 11:32 pm
Contact Delia: dsrangel@syr.edu